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Reuters
‘The selling pressure is feeding on itself:’ ARK, meme stocks tumble as Fed hike looms
Sizzling inflation that helped send 2-year U.S. Treasury yields to fresh 14-year highs continued to burn some of the winners of the so-called pandemic bubble Friday. The ARK Innovation Fund, run by star stock picker Cathie Wood, dropped 4.3%, helped along by steep declines in top holdings including Intellia Therapeutics Inc and Block Inc, the company formerly known as Square. The fund is now trading nearly 20% below the high it reached in late August, when investor hopes that the Federal Reserve would pause in raising interest rates helped the fund surge 40% from a two-year low reached in May. The fund is down nearly 55% for the year to date.
Reuters
U.S. consumer inflation expectations fall in September; sentiment rises
WASHINGTON (Reuters) -U.S. consumers’ near-term inflation expectations fell to a one-year low in September and the outlook over the next five years also improved, easing fears that the Federal Reserve could raise interest rates by a full percentage point next week. The University of Michigan’s survey on Friday followed in the wake of data this week showing a surprise increase in consumer prices in August, which raised concerns that high inflation was becoming entrenched. “This more or less silences those calls for a 100-basis-point hike next week,” said Jennifer Lee, a senior economist at BMO Capital Markets in Toronto.
Bloomberg
FedEx Miss Is Worst Deutsche Bank Analysts Have Seen in 20 Years
(Bloomberg) — Wall Street analysts didn’t mince words in discussing FedEx Corp.’s forecast for the current quarter — which missed by a landslide — and its withdrawal of full-year guidance. It’s really bad.Most Read from BloombergGermany Tightens Control Over Industry With Russian Oil GrabAdobe Near Deal for Online Design Startup Figma, Sources SayPutin Acknowledges Xi’s ‘Concerns’ on Ukraine, Showing TensionPatagonia Billionaire Who Gave Up Company Skirts $700 Million Tax HitRay Dalio Does th
Bloomberg
Summers Expects Fed to Raise Rates Above 4.3% to Curb Inflation
(Bloomberg) — The Federal Reserve may have to eventually raise rates above 4.3% to control inflation, Former Treasury Secretary Lawrence Summers said Thursday. Most Read from BloombergAdobe Near Deal for Online Design Startup Figma, Sources SayRay Dalio Does the Math: Rates at 4.5% Would Sink Stocks by 20%Putin Acknowledges Xi’s ‘Concerns’ on Ukraine, Showing TensionAdobe Tumbles After Deal to Buy Figma for About $20 BillionGermany Seizes Assets of Russian Oil Giant RosneftSpeaking at an event
Bloomberg
ByteDance to Buy Back $3 Billion in Shares After IPO Stalls
(Bloomberg) — ByteDance Ltd. is offering to buy back as much as $3 billion of its own shares from investors at a valuation of about $300 billion, giving existing backers a way to cash out after plans for an initial public offering stalled.Most Read from BloombergGermany Tightens Control Over Industry With Russian Oil GrabAdobe Near Deal for Online Design Startup Figma, Sources SayPutin Acknowledges Xi’s ‘Concerns’ on Ukraine, Showing TensionPatagonia Billionaire Who Gave Up Company Skirts $700
MarketWatch
U.S. Treasury recommends exploring creation of a digital dollar
The Biden administration is moving one step closer to developing a central bank digital currency, known as the digital dollar, saying it would help reinforce the U.S. role as a leader in the world financial system.
Bloomberg
Volkswagen Set for Multimillion-Euro Windfall on Gas Trade
(Bloomberg) — Volkswagen AG is set to receive hundreds of millions of euros in trading profits as it offloads a massive natural-gas hedge, selling large amounts of fuel it previously purchased back into the German market.Most Read from BloombergGermany Tightens Control Over Industry With Russian Oil GrabAdobe Near Deal for Online Design Startup Figma, Sources SayPutin Acknowledges Xi’s ‘Concerns’ on Ukraine, Showing TensionPatagonia Billionaire Who Gave Up Company Skirts $700 Million Tax HitRay
MarketWatch
Dow drops more than 350 points as FedEx warning rattles investors, stocks on track for big weekly losses
U.S. stocks were down sharply Friday afternoon, with major indexes headed for hefty weekly losses, after a warning from FedEx Corp. rattled investors amid ongoing worries that another interest rate hike by the Federal Reserve next week heightens recession risks. The S&P 500 (SPX) shed almost 58 points, or 1.5%, to trade around 3,844. The Nasdaq Composite (COMP) sank 208 points, or 1.8%, to 11,344.
American City Business Journals
NCR to split into two companies because of ‘state of financial markets’
After rumors that Atlanta’s NCR Corp. (NYSE: NCR) would be acquired, the financial technology company announced plans to split into two independent, public companies. “It has become increasingly clear to the Board that, given the state of current financing markets, we cannot deliver a whole company transaction that reflects an appropriate and acceptable value for NCR to our shareholders,” said NCR Board of Directors Executive Chairman Frank Martire in a statement. NCR was previously in “exclusive talks” to be sold to private equity firm Veritas Capital, The Wall Street Journal reported in July.
Reuters
Explainer-What election deniers could do in 2024 if they win U.S. November midterms
Several Republican candidates for governor and secretary of state in this November’s congressional elections are election deniers in battleground states that play a decisive role in U.S. presidential elections. All back former President Donald Trump’s false claims that there was widespread fraud in the 2020 presidential election won by Democrat Joe Biden. Voting rights groups and many Democrats worry that if the candidates win their races in these midterm elections, they will be in key positions to influence the outcome of the 2024 presidential election.
